Why am i being refused a loan

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patchouli

Guest
I've spent the last week applying for loans and being turned down and I fail to understand why. I'm looking for an unsecured loan for 10 thousand euro, I have a steady job earning 22K and no other loans or credit cards and no monthly outgoings other than electricity and Irish broadband subscription and around 3K savings in my current account. It is well within my means to make the repayments so why do I keep getting turned down?

The only thing I can think of is I changed bank a couple of years ago and my former bank continue to send me letters saying I owe them 12 euro in bank charges. Could this affect my credit rating?
 
Did the banks say why they rejected your application? What they tell you will enable you to determine if it's because of your income level/ability to pay or whether it's a credit rating problem

Sprite
 
patchouli said:
I've spent the last week applying for loans and being turned down and I fail to understand why. I'm looking for an unsecured loan for 10 thousand euro, I have a steady job earning 22K and no other loans or credit cards and no monthly outgoings other than electricity and Irish broadband subscription and around 3K savings in my current account. It is well within my means to make the repayments so why do I keep getting turned down?
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€10K is not peanuts when it represents c. 50% of your (net or gross?) income. If you have €3K already why not look at borrowing €7K? Having savings while carrying debt (other than mortgage debt) often does not make sense.
The only thing I can think of is I changed bank a couple of years ago and my former bank continue to send me letters saying I owe them 12 euro in bank charges. Could this affect my credit rating?
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Why not get your ICB records (www.icb.ie) to see if there are any black marks against you? ICB records are an important input to the loan assessment processes used by lenders but not the only input.
 
It may be that because you don't have any credit cards or loans or presumably a mortgage, you don't have a credit history and thus the banks and lending institutions that you are applying to have no previous form to go on.
 
Would repeated applications affect a decision? If a potential lender sees you have made numerous applications (I know they can in the UK, not sure about Ireland) they might wonder if you are borrowing over your means.
 
You are not saying why you want the loan and for how long, also are you in permanent employement? all of these could affect a decision

Also have you managed your current account appropriatly with no bounced cheques/unauthorised overdrafts
 
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